The Financial Planning Process has six key steps as follows:
Step 1 - Data Gathering – This process commences in the first meeting and may take a number of meetings to ensure we have sufficient knowledge of your circumstances to prepare appropriate recommendations.
Step 2 - Identifying your Goals – Everybody is different so it is necessary that we clearly identify your specific goals and objectives, both personal and financial. This includes considering goals such as your desired level of income, asset growth objectives, future capital expenditures, estate planning wishes, liquidity, accessibility and inflation protection.
Step 3 - Identifying your Financial Issues – In this step we compare your goals with your current financial situation and formulate a strategy to ensure your goals are achieved.
Step 4 - Preparing your Financial Plan – This written document becomes the blueprint for your overall strategy. Having established your goals and objectives and assessed your overall financial situation, taking into account your risks and aversions, this plan will outline the recommended strategy necessary to achieve your desired goals.
Step 5 - Implementing Your Financial Plan - Once the recommendations are agreed the plan is implemented.
Step 6 - Reviewing Your Plan – This is the most critical part of the financial planning process. We live in a world of constant change and this is certainly no different in the sphere of financial planning. There are three important variables in a financial plan that are guaranteed to change over time: